Buying a car

[alpharomeo]

After an unexpected accident, I find myself in a place where I might need to replace my car.  Doing some basic internet research, it seems like used cars are rather expensive.  I am not looking for any bells in whistles, no keyless remote, don't need power locks, etc.   Just a basic model car.  It seems like I can get a better deal on a brand new car with the lowest trim verses many of the used cars I am seeing listed.  I figure its because the used cars probably have a lot for features.  Am I missing out on something here?  I am a little apprehensive about private party sales as I am not much of a car guy. 

[frugaldrummer]

No, you're exactly right. If you're looking for a low mileage used car, many of them are expensive because the people who bought them originally got all the bells and whistles.

[SwordGuy]

I routinely see cars with < 30,000 miles on them for less than $10,000 at CarMax.   CarMax isn't the lowest price out there, but that's still less than a new car.

You can always have a mechanic check out a car before you buy it.   It will cost you a nominal sum but it's worth it. 

[chucklesmcgee]

Look at Craigslist, especially if you're in a heavily populated area. A lot of used car places want to put on a minimum 2-3k markup on used cars. It makes the low-end vehicle hard to find.

[Milspecstache]

You are exactly in my position 2.5 years ago.  After the cash for clunkers all the used cars were more expensive than a basic car at the dealership, brand new.  So for the first time in my life I bought a new car, complete with manual transmission/door/window, for $12.5k out the door.  I couldn't believe how many used cars were far more expensive.

The math is very good for this car as having a warranty is nice (ie no repair costs to budget) and as I baby my cars I should see a longer lifespan.  Even better my job put me on the road a year later for 1k miles/week for 10weeks.  Very lucrative to get paid by the mile when I was able to get 38mpg and their paid costs to me were based on something far worse.

[prodarwin]

Seems about right.  The more feature-laden a car is, the faster it depreciates.  Often they depreciate farther as well, as used buyers don't want the liability of expensive items on the car that can fail.

That said, I still find it hard to believe the newer car is a better deal.

[Milspecstache]

Seems about right.  The more feature-laden a car is, the faster it depreciates.  Often they depreciate farther as well, as used buyers don't want the liability of expensive items on the car that can fail.

That said, I still find it hard to believe the newer car is a better deal.

If I remember correctly as it was 2.5 years ago, I was finding used Toyota and Nissan cars for around $10k at 60k miles plus (ie out of warranty).  For me, it was worth it to pay $2500 to get the extra mileage and avoid budgeting repair costs for the first 60k miles.  When I bought mine there were plenty of similar, but used, models (ie more features) that were listed above the price I paid but with 30k miles or more.

[AccidentalMiser]

I recently bought a new Ford Focus S model, manual transmission for 15.4k including sales tax.  I LOVE it.  The dealership threw in a lifetime powertrain warranty for free.

I second the Craigslist idea also, some great deals to be had.  Just make sure to do your due diligence. 

[Eric]

Am I missing out on something here?  I am a little apprehensive about private party sales as I am not much of a car guy.

Kind of a strange username for someone who's not a car guy. :)

Just make sure you consider the opportunity cost.  You can get a ridiculously nice used car for $10K.  I'm assuming that even the most barebones new car is going to be close to $20K if not more.  Investing the difference over the life of the car can come up to some big bucks. 

For example, $10K for 10 years at 7% is $19.6K.  So buying a new car for $20K is actually costing you $39.6K compared to a used car for $10k. 

(Obvious omission from hypothetical example is increased maintenence from used car compared to new, but no matter what numbers you use for that, you'll come out ahead with a cheaper car.  Feel free to use your own numbers)